Former WorldCom CFO Scott Sullivan faces new federal charges that he defrauded creditors in order to obtain loans for the company.

Sullivan, who is out on bail pending trial, has already been brought up on charges related to the $11 billion accounting scandal and financial collapse of the nation's No. 2 long-distance company. Legal experts say the latest charges may be part of an effort by prosecutors to help bring a case against former WorldCom CEO Bernie Ebbers.

According to a

Reuters

report, the 11-point Manhattan grand jury indictment accuses Sullivan of using bogus financials to seek some $4.25 billion in credit agreements from banks including Chase Manhattan and Bank of America.

Under Sullivan's reign, WorldCom hid massive losses by manipulating some $11 billion in costs.

WorldCom, which changed its name to

MCI

this week to distance itself from the taint of its previous management, is seeking approval from creditors on a restructuring plan and expects to emerge from Chapter 11 this fall.